New Delhi6 hours ago
Buying mobile phones may become cheaper in the coming days, while buying gold and silver may be expensive. This is because the government has reduced the import duty on some parts of mobile phones and increased the duty on gold and silver. In such a situation, what things are going to increase the burden on the common man’s pocket and what will give him relief, do you know what has become cheap and what has become expensive…
Cheap
- Import duty on goods used to make lithium-ion batteries has been reduced.
- Custom duty on open sale parts of TV panels reduced from 5% to 2.5%.
- Custom duty reduced on certain parts for mobile phone manufacturing.
- Custom duty on heat coil has been reduced from 20% to 15%.
- Duty reduced on seed used in the manufacturing of lab-grown diamonds.
- To promote exports, custom duty on shrimp feed will be reduced.
Costly
- National Calamity Contingency Duty (NCCD) on cigarettes increased by 16%
- Duty increased on goods made of gold bars and platinum
- Silver duty from 6% to 10%. Duty increased on goods made from it
- Duty on compounded rubber increased from 10% to 25%
- Custom duty on kitchen electric chimney increased from 7.5% to 15%
Now let’s talk about GST under which 90% products come…
There are very few products which are going to be cheap or expensive in the budget. The reason for this is Goods and Service Tax i.e. GST. After 2017, almost 90% of product prices depend on GST, which is decided by the GST Council. Currently GST has four tax slabs – 5%, 12%, 18% and 28%. Essential commodities are exempt from this tax or placed in the lowest slab. GST Council takes all the decisions related to GST.
Some interesting facts before moving on…
It shows that between 1950 and 2023 there are some such products which have become easy for the common man to buy. It can also be said that the inflation of these products has increased much less than the income.
Now look back at one year…
Flour increased by 23% last year and loans have also become costlier. In January last year, one kilo of flour was available for Rs 26. In December, its price increased to Rs 32 per kg. Similarly, the prices of daily use items like oil, milk and rice have also increased in every household. For the first time in 2022, the domestic gas cylinder crossed Rs 1,000. Loans have also become costlier due to increased interest rates by RBI to control inflation. You can understand the inflation of the last one year from the graph given below…
Inflation in top 5 economy
It is not only India that is facing inflation. Talking about the world’s top 5 economies America, China, Japan, Germany and India, Germany had the highest inflation of 8.6% in December 2022. Retail Inflation (CPI) in India came down to 5.72% in December. This is the lowest level in 12 months. There has been some respite from inflation due to fall in the prices of food items, especially vegetables.
Let us know some of the reasons for rising inflation along the way. It may be a bit cumbersome to read, but it will make it much easier to understand the economy of inflation…
The rise in inflation simply means that the value of your earned money will decrease. For example, if the inflation rate is 7%, then Rs 100 you earn will be worth Rs 93. There are many factors that can increase prices or inflation in an economy. Typically, inflation is caused by an increase in production costs, an increase in demand for products and services, or a decrease in supply. There are 6 major reasons for rising inflation:
- Demand pull inflation occurs when the demand for certain products and services suddenly increases rapidly.
- Cost-push inflation occurs when material costs increase. It is passed on to the consumer.
- If the money supply grows faster than the rate of production, it can result in inflation.
- Some economists also consider the sharp increase in salary as a reason for inflation. This increases the production cost.
- Government policy can also lead to cost push or demand-pull inflation. That’s why the right policy is necessary.
- Many countries are more dependent on imports, where the weakening of the currency against the dollar causes inflation.